Ken Clarke has taken aim at Boris Johnson for indulging in "silly populist nonsense", as he called for the Government to rein in its spending amid inflation fears.
The former chancellor told Radio 4's Today programme the Royal Yacht was "a complete waste of time " and a symptom of the fact that "there are people in Number 10 who think there is free money".
Money should be spent more wisely on retraining and getting people back into work, the Tory grandee added.
Lord Clarke, who was one of the 21 Conservative MPs to be stripped of the whip in 2019, attacked Mr Johnson's "short-term populist view" on spending, adding: "The best Conservative governments... were above all respected for their competence and their competence in running the economy."
His comments come amid growing tensions between Number 10 and Number 11 over the Prime Minister's unrestrained desire to keep spending, putting him at odds with the Chancellor as he attempts to balance the books.
He also raised the spectre of inflation as the country moves out of the furlough scheme, saying: "Unless we actually take care, inflation is now the big risk over the next few years."
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Downing Street has rejected the suggestion made by former chancellor Ken Clarke that the new yacht was "silly populist nonsense".
The Prime Minister's official spokesman said: "Obviously we totally reject that, the new national flagship will boost British trade and drive investment into our economy. It will be used to host high-level trade negotiations, for trade shows, and will sail all over the world promoting British interests."
The spokesman said Number 10 would "set out the full cost in due course." Pushed on whether there was a current estimate, he added: "Not at the moment."
Asked whether there were better things to be spending money on, the spokesman said: "We are investing a great deal of money into the country on a number of issues important to the public, be it our NHS or policing."
The Ministry of Defence will take on the "initial cost" of a new Royal Yacht, No 10 has said, but the source of the full funding for the project will be set out "at a later stage".
Asked what evidence Matt Hancock's claim that the ￡200m flagship would "pay for itself many, many times over" (see 8:45am), was based on, Boris Johnson's spokesman admitted there was none.
"Well, he was simply referring to the fact that this is a ship that will promote UK trade and drive investment back into our country, so we expect any costs of building and operating the ship will be outweighed by the economic benefits it brings over its 30-year lifespan," he told reporters.
Asked whether any business groups or exporter organisations had called for a trade yacht, he added: "I don't have that information to hand but, like I say, we're confident this is a ship that will be in the interests of British trade."
Sir Jeffrey Donaldson, the new DUP leader, has pledged to "unite Northern Ireland and heal the divisions of the past".
The Lagan Valley MP said: "The task ahead is great. I do not underestimate the challenge, but I know the overwhelming majority of people who live here want Northern Ireland to keep moving forward.
"I have the vision to lead unionism into its second century, by embracing those who believe in a Northern Ireland where people of all identities and none can live, work and raise their family.
"I have the vision to unite Northern Ireland and heal the divisions of the past. We don't move forward by ignoring our past but by remembering and learning," he added.
Sir Jeffrey Donaldson is the only person who has been nominated to become the next leader of the DUP, the party has confirmed.
Confirming that Sir Jeffrey was not the leader, party chairman Lord Morrow said: "The last number of weeks has been difficult for the party and mistakes have been made. Now is the time to move forward in a spirit of humility and mindful that our focus must be on serving the people whom we represent.
"I look forward to the challenges of rebuilding and reconnecting in the time ahead."
Rishi Sunak has said it is his "hope and expectation" that July 19 will be the end of coronavirus restrictions in England.
During Treasury questions, the Chancellor said he was optimistic about the prospect of lockdown being finally lifted next month "because by that point we will have done what we set out to do, which is to get extra jabs in more people's arms to provide us with that extra level of protection we were seeking."
Mr Sunak added: "The only sustainable way to protect those jobs is to get the economy reopened so those people can return to work and provide for their families."
Boris Johnson opened his Cabinet meeting this morning by stressing that levelling up is for the whole of the UK, following last week's by-election upset in Chesham and Amersham.
As well as planning and HS2, Tory MPs widely interpret the historic defeat as proof that the Prime Minister is turning off traditional voters in the South as he looks to woo those in the Red Wall with high spending commitments targeted at the North and Midlands.
He "started Cabinet by reiterating his commitment to levelling up the whole country", a Downing Street spokesman said.
"He emphasised that this approach will benefit everyone, including by spreading employment opportunities more evenly across the United Kingdom, helping relieve pressure on services and housing demand in areas which have traditionally seen higher demand."
David Cameron loves employing women because they work harder, his wife Samantha has said.
Mrs Cameron, 50, said she too believes women are sometimes “better at our jobs than men,” but are not so good at having the “ego” to go with it.
The businesswoman and wife of the former Conservative prime minister was speaking to the Telegraph’s Claire Cohen on her Imposters podcast, which you can listen to using the audio player below.
She said: “My husband always says he loves employing women because they work harder. They are perfectionists. What you get out of them is often much better than men.”
Emmanuel Macron and Marine Le Pen were the two obvious losers of the first round of France’s regional elections, which took place at the weekend, writes Anne-Elisabeth Moutet. Macron’s party barely made it above 10 per cent, while Le Pen’s fell far short of expectations.
But the biggest losers are the French people. When less than a third of citizens bother to go to the polls, something is very wrong.
The danger is that, come any new crisis – a Covid variant causing a fourth wave, the combined effects of runaway debt and worldwide inflation on the economy – the current disaffection may morph into nationwide anger that would make the gilets jaunes revolt look like a storm in the Tuileries Gardens model sailboats pond.
And nobody in our listless country seems to know where to go from here.
Read more from Anne-Elisabeth here.
It is "hard to see" how the Northern Ireland protocol will be sustainable in its current form, Lord Frost has said.
He did not deny claims made by outgoing DUP leader Edwin Poots that he has received a personal assurance from the UK Government that significant changes will be made to the protocol (see 10:52am).
"We haven't made a secret of the fact that we find it hard to see how, as currently operated, important elements of the Protocol are sustainable," the Brexit minister told MPs. "I don't think that's a new judgment. We have also said that we are considering all our options, and we are doing so.
"There is a real world timetable to things that needs to be taken into account when we do that. That's where we are at the moment, we are actively considering the options to deal with a situation that is hard to see as sustainable."
Lord Frost has insisted that progress was being made in some areas of talks on the Northern Ireland Protocol.
"We have put in our proposal to extend the grace period on chilled meats which expires very soon and I know both sides are thinking very actively about that," the Brexit minister told the Commons' foreign affairs committee.
"I wouldn't want to leave the impression that nothing is happening. Quite a lot is happening, in one or two areas there is engagement, in other areas it's more difficult."
Lord Frost has suggested the UK should be less reliant on France, saying "this country should maximise the assets it has got".
Highlighting the island status and maritime history, the Brexit minister told MPs: "Strategically this county should be a global country and try to develop ports and infrastructure, and export and import arrangements, that reflect that."
Asked if he meant that the UK should be less dependent on trade with France, he said that would be "the consequences of such a policy".
Lord Frost has said Leave campaigners "would have been surprised" by the challenging relationship between the UK and the EU since Brexit.
He told MPs it was "too simplistic to say some want to punish us and some want to move on - it's not quite teething troubles, things are definitely settling down".
He warned it would be "bumpy for some time" adding: "It would have surprised those who campaigned for Leave to think the relationship would be as relatively difficult as it is now."
Asked which country is being most difficult, he mentioned France but stressed there was a lot of issues and connections that need to be resolved.
"The issue with France is not good will or ill will - I like to think there is a lot good will - bu there are a lot of things in the relationship."
Lord Frost has said the UK has been talking "honestly and frankly" with US counterparts about the UK's position regarding Ireland.
The Brexit minister told MPs he would not comment on what the new regime made of the situation, simply saying: "Ireland is very much debated in Washington, as are many other issues."
He added: "We talk honestly and frankly with them about it - we don't have a problem with that. Our views are well-founded and well grounded and are very persuasive."
The EU is not characterised by "its fleetness of foot", Lord Frost has conceded, but insisted the UK had reason to believe it could be in the "special case" of Northern Ireland.
"That was the very reason we had to agree a protocol and special arrangements in the first place," he tells MPs. "After three or four it was pretty clear we were dealing with a sensitive and delicately balanced situation in Northern Ireland and there would be some response to it.
"It's possibly ambitious, but we were hoping and are hoping and continue to hope we will have a constructive relationship with the EU more broadly, and saw this as a big part of it."
The Northern Ireland protocol was "pretty exceptional" and "a big compromise to protect the peace process" and ensure goods could continue to flow across "our own country", Lord Frost has said.
In order for the arrangements to be sustainable they have to be interpreted in a "pragmatic way and that is not what is happening", he adds.
"We are implementing the protocol as best we can... but there are still big problems and this is creating a sense of difficulty for identity in Northern Ireland. At the moment there isn't a huge amount of engagement, but we keep trying."
He said the UK was "not convinced" that best efforts were being made to reduce checks and processes to the minimum, despite it being a provision in the protocol. If it is treated as though it were "any other border within the EU... we are going to have a problem".
Lord Frost has insisted there is "quite a lot of urgency" about securing touring visas for musicians, noting "we have agreed something better" with Efta countries.
He told MPs: "Unfortunately the EU would not agreed to that solution, so that is where we are. We would much rather be in a better position, but unfortunately it takes two.
"Something like 17 of the 27 have a pretty relaxed regime for touring artists but there are 10 or so where the rules are more complicated," he added.
On the looming issue of the EU cutting quotas of British TV content, he says he is hopeful that "good sense will prevail", but admits there is nothing that the UK can be done to prevent it.
"It is a traditional position of France that takes some shaking that audio-visual arrangements are not part of free trade agreements... I don't think there was ever any realistic change of coming out of this negotiation in a different place."
The UK's initial refusal to grant EU ambassador Jo？o Vale de Almeida was "over -interpreted in public debate", Lord Frost has said.
"The UK was always trying to ensure EU delegation was able to do its business in London in a normal diplomatic way," he tells MPs. "We did have some discussions with EU about this last year
"It was slightly surprising to us that it blew up as an issue but we were never seeking to squeeze out delegation or treat them as non-diplomatic mission, we just wanted to find the right basis."
He declines to give details on the relationship, saying it is still being finalised.
Lord Frost says his role "complements" the Foreign Office's work, particularly focused on the Trade and Cooperation Agreement.
"My job is to ensure that all our interests, with respect to a particular member state, are taken into account, properly ranked and worked through," he tells Tom Tugendhat, chairman of the foreign affairs committee.
"It is a natural division and works in practice but does require us to work closely together day to day," he adds.
He notes that there is a "large amount of business" with France which "occupies a fair amount of my time".
Lord Frost has begun his evidence session before the Foreign Affairs Committee by stressing that he only has an hour, and suggesting that he is appearing only as "a courtesy", with his "primary responsibility" to the two Brexit-focused committees.
He made the same comments to the committee he appeared before last week.
Asked if he is the Europe minister, he says "yes and no", noting he is "not the only minister with an interest" in post-Brexit relations, highlighting Boris Johnson's involvement particularly, alongside the Foreign Secretary.
A deal to ensure the final stages of Euro 2020 are held at Wembley is on the brink of being struck between the UK Government and Uefa.
A UK Government source said there had been "positive" talks with European football's ruling body to address the issues around coronavirus restrictions.
Uefa is thought to be pushing for 2,500 VIPs to attend the final on July 11 without being subjected to the quarantine requirements that apply to other travellers. Crowds of at least 40,000 will be allowed for the final four games, as part of the pilot for mass events.
A UK source said "final details are being worked through".
However other countries are vying to host the final, with Italian Prime Minister Mario Draghi yesterday suggesting that Rome could provide an alternative venue, saying: "I will try to stop the final being held in a country where infections are rising quickly."
Outgoing DUP leader Edwin Poots has said that he has received a personal assurance from the UK Government that significant changes will be made to the Northern Ireland Protocol.
Mr Poots, who was forced to resign as leader last week following an internal party revolt, said Northern Ireland Secretary Brandon Lewis had indicated there would be a "significant win" coming.
Mr Poots told the BBC: "I have received assurances that there will be changes to the protocol and that that will be very significant, that the UK Government are not going to tolerate how things are and how the EU have conducted themselves since the protocol."
He added: "We are looking to these changes happening in July, most likely early July. We believe that there is a significant victory to be won on the protocol. I will hand over at the end of June and hopefully most of the work will actually be achieved by that stage and we can make those gains."
Children and young people did report poor mental health at the start of the pandemic, but have been "incredibly resilient", the mental health minister has said.
Nadine Dorries told the Commons' health and social care committee: "It's been a difficult year for everybody and it's particularly been a difficult year for children and... we did see, particularly early on in lockdown, children and young people reporting low mood, anxiety, poor mental health and I want to talk about that terminology.
"Actually, those young people have been incredibly resilient... so, rather than labelling a generation as a generation experiencing and suffering from mental health issues, I think we really need to acknowledge that we have a very strong, resilient generation, that we should be incredibly proud of," she said.
The main problem more recently has been the "readjustment" to returning to school after a sustained period at home, she added.
There been a significant rise in demand for eating disorder services during the pandemic, the mental health minister has said.
Nadine Dorries told MPs that eating disorders had been "the biggest issue" recently, adding: "We've seen a 22 per cent increase in demand, just over the past 11 months in eating disorder referrals and demand for services.
"Eating disorders were on the increase, we saw the uptick, before the pandemic began.
"It's a very complex issue. It surrounds lots of things such as body image, social media, but lockdown brought a particular pressure and a particular strain on those young women who had been concealing, managing, living with eating disorders, and it kind of came to a crisis point during lockdown.
"So, dealing with that, the impact that's had on other services has been a priority, it's been a huge demand."
When the facts change, you change your mind. At least that’s what happens in normal times, and that’s what reasonable people do, writes Iain Dale.
Read the rest of Iain's column here.
Ken Clarke, the former chancellor, has launched an astonishing broadside against Boris Johnson's approach to spending, calling it "populist", "nonsense" and "crazy".
The former chancellor claimed there were some in Number 10 "who think there is free money" and warned that this "irresponsible" approach could add to inflationary pressures that already exist as the country emerges from the pandemic.
Lord Clarke's intervention comes at a time of strained tensions with the new resident of Number 11, who is also keen to cut back on spending. But Matt Hancock has insisted that projects such as the Royal Yacht would be value for money at a time when Global Britain is establishing its foothold.
So is the Prime Minister spending money wisely - or it is time to cut him off? Have your say in the poll below.
The Lord Chief Justice fears delays in sex cases, like the one which over three years ruined the life of Lady Nourse, are "deeply damaging to people".
Lord Burnett is visibly frustrated at such delays, which contributed to what Lady Nourse confessed to The Telegraph was her own sense of "massive injustice".
Talking exclusively to The Telegraph, he says this is the bitter fruit of a criminal justice system in crisis - not just in the courts, but in the police and at the Crown Prosecution Service (CPS), too.
It is a crisis that has been brewing for a decade, as budget cuts hit staffing and courtrooms and police numbers, and which then exploded during the pandemic, as courts shut down and cases piled up.
Read our exclusive interview with Lord Burnett here.
Matt Hancock's reaction to being grilled over his plans for social care was "very worrying to see", Harriet Harman has said.
The Health Secretary repeatedly dodged questions about when the crunch meeting between Boris Johnson, Rishi Sunak and himself had been rescheduled for after it was scrapped at the last minute, only giving vague assurances that a plan would be readied this year (see 8:08am).
The veteran Labour MP told Sky News: "It is urgent that social care is sorted out... everybody wants to see them get this sorted out.
"The pandemic put social care right at the top, where it should have been before, so let's hope he doesn't stick with that position and gets down to working across parties to sort it out."
A senior Tory MP has said he is afraid that restrictions will be reimposed this autumn, despite backbenchers being opposed to them.
Peter Bone said he was "pretty confident" about the July 19 unlocking going ahead, having been delayed by a month, but said "as for the autumn, who knows what will hit us then.
"There is a lot of talk that we will be hit by a flu wave because people haven't been mixing and haven't built up resistance, so I am not sure about the autumn," he added.
"If we unlock completely and everything moves smoothly from there, perhaps the Prime Minister was right... but we have to be allowed to get on with our lives," the Wellingborough MP told Talk Radio. "It's time we put freedom first, the only reason to restrict the freedom of the British people is if there is a clear and real threat."
He called on the Government to "take the vaccine dividend" by opening the country up.
Labour members of the Commons' education committee were whipped to vote against a report calling for the term "white privilege" to be dropped, a Tory MP has claimed.
Fleur Anderson, Apsana Begum, Ian Mearns and Kim Johnson voted against the report, into how white working class pupils are being let down by the education system, being made public.
Here is Richard Holden's explanation as to why:
Quarantine rules could be waived for fully vaccinated travellers returning from amber list destinations as early as August, reports suggest.
This rule change could be revealed on Thursday when an update to the traffic light categories is due.
A “senior government source” told The Times that by August a sufficient number of people will have received both doses to allow the Government to implement the changes.
Matt Hancock, the Health Secretary, confirmed to Sky News this morning that ministers were “working on” plans for quarantine-free travel for fully vaccinated Britons.
Asked if these plans could be in place as soon as August, Mr Hancock replied: “We'll get there when it's safe to do so”.
Read more here.
Rishi Sunak has reiterated the need to get "public finances on a sustainable footing" as new figures show a drop in Government borrowing.
The Office for National Statistics (ONS) said that despite the year-on-year fall to ￡23.4 billion - down from ￡43.8 billion at the height of the pandemic, it was still the second highest on record and ￡18.9 billion more than in May 2019.
The ONS revised down borrowing for the financial year to the end of March by ￡1.1 billion to ￡299.2 billion, though this was still the highest since the end of the Second World War.
The Chancellor said: "As we emerge from the pandemic, we are continuing to support people and businesses to get back on their feet and our Plan for Jobs is working. It's also important over the medium term to get the public finances on a sustainable footing.
"That's why at the Budget in March I set out the difficult but necessary steps we are taking to keep debt under control in the years to come."
The term white privilege is "wrong-headed" because it "says there is collective guilt when it should be individual responsibility for racists acts", the chairman of the Commons' education committee has said.
Conservative MP Robert Halfon denied he was trying to engage in culture wars by bringing up white privilege, but stressed it was "the wrong way to describe this and deal with racism, because it pits one group against another".
The Harlow MP told Radio 4's Today programme: "One of the reasons we found that white working-class boys and girls are struggling in education is because the families have disengaged from the education system and we believe this concept of white privilege perpetuates that idea."
Mr Halfon added: "I have never engaged in culture wars, all I care about, as our committee does, is addressing the decades of neglect that have led to a situation where white working-class boys and girls from disadvantaged backgrounds are underperforming."
A new Royal Yacht will "pay for itself many, many times over" because it will bring in investment from the rest of the world, Matt Hancock has insisted.
The Health Secretary defended the plans, after Lord Clarke attacked it as a "complete waste of time".
Mr Hancock told Radio 4's Today programme: "The amount of investment that you can get in from the rest of the world by showing the best of Britain in harbours the world over is very, very significant, and I think we should be getting out there and trading with the world.
"And so I think that a Royal Yacht is a great idea and I'm very positive about it, because I think it will more than pay for itself many, many times over."
Matt Hancock has insisted he has "a very good, close working relationship" with Boris Johnson, after it emerged that that Prime Minister had said he was "totally f------- hopeless".
The Health Secretary told Radio 4's Today programme: "I work with the Prime Minister every single day. We have a very good close working relationship. That was, frankly, ancient history - of course there are pressures in the middle of a pandemic."
But asked how he felt about being described as "hopeless", he said: "It doesn't matter - it was an expression in the middle of a challenging and frustrating period, where we managed to eventually deliver on the testing capacity we needed, which we didn't have at the start."
He added he was "very proud" of his work including the vaccination programme which was "just one example" of the strength of their relationship.
There will be a "very significant" flu vaccination drive this winter aimed at protecting the NHS, Matt Hancock has said.
"We are worried about flu this winter because people's natural immunity will be lower because we haven't had any serious flu for 18 months now," the Health Secretary told Times Radio Breakfast.
"We had a difficult winter in 2019, we didn't have flu at all really this last winter because of the restrictions that were in place for Covid. So, it is something we are worried about.
"We are are going to have a very significant flu vaccination drive this autumn - potentially at the same time you might get your Covid booster jab and your flu jab at the same time, we are testing whether that can be done.
"We do need to make sure we protect the NHS this coming winter. We have got time to do the preparation for that now, though, and make sure we are as vaccinated as possible, because that is the way to keep people safe."
Ken Clarke, the former chancellor, has called for "more restraint" in Government spending, warning this could see inflation spike further.
Taxes should be raised to bolster the public coffers, he adds, noting that VAT was a progressive tax that could be cut again.
"You can always tell Boris 'if we are successful and the economy is growing in two or three years we can give you a pre-election tax cut, which will be frightfully popular'.
"But right now, we need to raise some revenues because otherwise you will suddenly have a financial crisis when you can't borrow this money that you think is out there going free. The idea that foreign creditors are going to lend us money when interest rates are as low as they are at the moment is completely crazy.
"Once they think are you being irresponsible, the Bank of England will have to print even more money and that is inflationary - very inflationary."
Matt Hancock has committed to addressing the "many injustices" in social care by bringing forward proposals "before the end of this year", after a top-level meeting was cancelled at the last minute.
Mr Hancock this morning insisted that was no indication of the Government's priorities.
"The Prime Minister has committed to delivering this plan before the end of this year and we are going to do that," he told Sky News. "The question in terms of social care is how we can best make sure people get the care they need, in the setting they need, whether in their own home or care home, and how that is paid for and who pays for it.
"There are many injustices in the current system we want to tackle, that is one of the reasons why it is such a complex piece of work, but it is also why it’s such an important piece of work."
Challenged over the meeting delay, he refused to answer questions on "diary management issues".
Ken Clarke, the former chancellor, has taken aim at Boris Johnson for his "short-term populist view" on spending, calling for "health economic growth" to restore the country's finances.
"What we need is a long period of sustainable growth with low inflation," the peer told Radio 4's Today programme. "We need to make sure that the necessary things we have done to minimise what I know has been hardship for many people doesn't turn into a disaster when we go back to old boom and bust, which will do nothing for people who are striving.
"We can't take a short term populist view, and say 'good heavens it's popular spending money on things," he added.
"The best Conservative governments... were above all respected for their competence and their competence in running the economy."
Ken Clarke, the former chancellor, has said he is "quite worried" about the prospects of rising inflation, saying it is "the big risk" of coming out of pandemic support such as the furlough scheme.
"It was obvious the big risk when you get out of it was going to be inflation... unless we actually take care, inflation is now the big risk over the next few years," Lord Clarke told Radio 4's Today programme.
"These are such unusual circumstances, no one is quite sure how big the risk is or when the crunch will come... But is now time to start addressing the serious problem of the debts we run up," he added.
"While we can tolerate a short little boomlet, with inflation going up the rest of this year, it is vital that we act very promptly to control it once it's obviously settled in. You have also got to start addressing the serious question of how we pay for the fantastic amount of borrowing in a sensible and responsible way to in order to maintain fiscal discipline for the future."
Matt Hancock has said the Government is "on track" for the July 19 easing of restrictions, but acknowledged that opening up travel abroad is "more difficult".
"Thankfully, because of the vaccination programme, we have been able to free up a huge number of the restrictions here at home," the Health Secretary told Sky News.
"We are on track to deliver the Step 4, the further openings, on July 19, which is good.
"We are also looking to see how we can replace the protections that are currently there with the restrictions with protections that come from the vaccine, with respect to international travel as well.
"But it is more difficult freeing up international travel."
The Government has “a duty” to the next generation to build more homes, Robert Jenrick said on Monday as he faced down Conservative MPs who want him to water down controversial planning reforms.
The Housing Secretary insisted that it was only fair that ministers should reform the current system so that young people could “aspire to own the keys to their own home”.
The comments came after Tory MPs used a Commons debate to press the Government to water down planning reforms that were blamed for last week’s shock defeat in the Chesham and Amersham by-election.
Writing in The Telegraph, Mr Jenrick says: “The belief that home ownership should be achievable for all who dream of it and that young people should aspire to own the keys to their own home."
Read the full story here.
Lots of news bubbling around today, including the social care meeting that was scrapped at the last minute, a report from the Commons' education committee on white working class kids being left behind, planning reforms and whether or not the Euros final will be taking place in the UK...
Here is today's front page.
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